Supreme Court Censures CBI and Delhi Police for Slow Probe in Indiabulls Case

The Supreme Court on Tuesday expressed strong displeasure over the lack of progress in the investigation against the promoters of Indiabulls Housing Finance Limited (IHFL), now known as Sammaan Capital Limited. The case involves allegations of round-tripping of funds, violations of the Companies Act, and siphoning of funds.

A three-judge bench headed by Chief Justice of India Surya Kant initially considered summoning the heads of the investigating agencies—the Central Bureau of Investigation (CBI) and the Economic Offences Wing (EOW) of the Delhi Police—but refrained after Additional Solicitor General S V Raju assured the court that a status report would be filed.

“Owing to the negligence of CBI and EOW Delhi in not even filing a status report, and total failure to apprise this Court about steps taken for registration of RC (regular case) or investigation, we would have summoned the heads of these agencies but for the persuasion of ASG Raju, who assures that needful will be done and status report filed,” the bench, also comprising Justices Joymalya Bagchi and V Mohana, said in its order.

The court's remarks highlight concerns over the pace of investigation into serious financial irregularities. The case was brought before the Supreme Court by a petitioner seeking a thorough probe into the alleged misconduct of Indiabulls promoters. The company has denied any wrongdoing.

The bench has directed the investigating agencies to submit a status report within four weeks, detailing the steps taken and the timeline for completing the investigation. The court warned that failure to comply would result in stricter action.

This development underscores the judiciary's role in ensuring accountability in financial investigations. The Indiabulls case has been under scrutiny for several years, with allegations of large-scale fund diversion and corporate governance failures.